Marginal Revenue

Madi Spinosa, Sarah Martin, Maryn Matthews, and Nate Wiggins

Marginal Revenue

Madi Spinosa, Sarah Martin, Maryn Matthews, and Nate Wiggins

What is marginal revenue?

Marginal revenue is the change in total revenue that results from selling one more unit of output.

simple terms:

The money gained by selling one product.

Business

When a business thinks about a change in its output, it considers how its revenue will change as a result of that change in output. They are trying to find the additional revenue from selling another unit of output.